Generative AI Software Global Market Report 2024

The generative AI software market size has grown exponentially in recent years. It will grow from $3.92 billion in 2023 to $6.32 billion in 2024 at a compound annual growth rate (CAGR) of 61.2%. The growth observed during the historical period can be attributed to several factors, including increased computational power, advancements in deep learning algorithms, growth in demand for automation and efficiency, the availability of large datasets for training, and the expansion of applications across various industries.

The generative AI software market size is expected to see exponential growth in the next few years. It will grow to $42.9 billion in 2028 at a compound annual growth rate (CAGR) of 61.4%. The forecasted growth can be attributed to several factors expected in the upcoming period, including the increasing adoption of AI in creative industries, the emergence of new generative AI techniques, integration with virtual and augmented reality technologies, the demand for personalized content and experiences, and the expansion of generative AI applications in healthcare and drug discovery. Key trends anticipated in the forecast period encompass the democratization of generative AI tools, a heightened focus on ethical and responsible AI development practices, the convergence of generative AI with blockchain technology, the rise of AI-powered generative design in manufacturing processes, and the growth of generative AI for content generation in social media and marketing domains.

The expansion of the generative AI software market is expected to be propelled by the growth of the gaming industry in the future. The gaming industry involves the creation, production, distribution, and monetization of video games across various platforms, including consoles, PCs, and mobile devices. This industry is experiencing growth due to factors such as increased accessibility through mobile platforms and a growing global audience embracing gaming for both entertainment and competitive purposes. Generative AI software enhances the gaming experience by dynamically generating immersive worlds, characters, and content, enriching player experiences with personalized and unpredictable elements. For example, according to the Entertainment Software Association in January 2023, U.S. consumer spending on video game content, hardware, and accessories reached $7.6 billion in December 2022, marking a 2% increase from 2021, and totaling $56.6 billion for the entire year of 2022. Therefore, the expansion of the gaming industry is fueling the growth of the generative AI software market.

Key players in the generative AI software market are concentrating on developing software with advanced technology, such as text-to-image tools, to maintain a competitive edge. Text-to-image tools are software systems or applications that utilize artificial intelligence algorithms, particularly generative models, to create images based on textual descriptions or prompts. For instance, in September 2023, OpenAI Inc. introduced an upgraded version of its text-to-image tool, DALL-E 3, which uses natural language inputs to generate images based on provided descriptions. The tool employs AI chatbots like ChatGPT to generate tailored prompts based on user ideas, ensuring a better understanding of textual prompts and creation of detailed images while adhering to legal and safety protocols to prevent the generation of explicit or discriminatory content and respect intellectual property rights.

In March 2024, Apple Inc. acquired DarwinAI Corp. for an undisclosed sum, enhancing its expertise in AI, particularly generative AI, and reinforcing its position in the AI sector. DarwinAI Corp. is a Canada-based artificial intelligence company specializing in providing generative AI software through its Generative Synthesis (GenSynth) technology.

Major companies operating in the generative AI software market are Alphabet Inc., Microsoft Corporation, Meta Platforms Inc., Amazon Web Services Inc., International Business Machines Corporation, NVIDIA Corporation, Adobe Inc., Databricks Inc., Anthropic Technology Ltd., OpenAI LP, C3 AI inc., Hugging Face Inc., Glean Labs Inc., Synthesia Technologies Ltd., Stability AI inc., SoluLab Inc., Accubits Technologies Inc., Neoteric Technology Ltd., Tome Labs Inc., Inflection AI inc., Cohere Technologies Inc., Mostly AI GmbH, Jasper Solutions Inc., Addepto Sp. z o.o., Markovate Inc.

North America was the largest region in the generative AI software market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative AI software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative AI software refers to a type of artificial intelligence technology specifically developed to produce new content, such as images, text, audio, or video, leveraging patterns and examples from existing data. It employs techniques including neural networks, deep learning, and machine learning algorithms to discern the underlying structure of the data and subsequently generate original outputs that mimic or closely resemble the original data.

The primary components of generative AI software consist of software and services. Software encompasses a collection of instructions and data enabling a computer or other device to execute specific tasks or functions. These software include various models such as large language models, image and video generative models, multi-modal generative models, among others, utilized across multiple applications including computer vision, natural language processing (NLP), robotics and automation, content generation, predictive analytics, among others. Generative AI software finds application across diverse sectors, primarily including media and entertainment, banking, financial services and insurance (BFSI), information technology (IT) and telecommunication, healthcare, automotive and transportation, among others.

The generative AI software market research report is one of a series of new reports that provides generative AI software market statistics, including generative AI software industry global market size, regional shares, competitors with a generative AI software market share, detailed generative AI software market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI software industry. This generative AI software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The generative AI software market includes revenues earned by providing services such as content creation, design automation, and personalized recommendation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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